How to Buy June 17th | Prism: Invest In Ourselves | Prism: Diversify Your Brand

 

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

Investing in Your Health

More to come on Investing in Your Health in Pt 2. But I wanted to send major love to Naomi Osaka. I'm proud she had the courage to walk away from this year's US Open when things didn't feel right. Her health and mental health is vital for herself, family, and career.

How to Buy + Sell Stocks

Over the last few month's I've given you most of the tips, that I've come to use over the past 15+ years of trading stock. I learned by trial and error and shared these examples so that you jump over my potholes, not step into them. Similar to the pillars, I've simply learned to invest by having discipline. 

1) I defined my personality which shaped my investing personality. In life, I like deals and buying things on discount so my investment style is the same. On Wall Street, they call this value investing (in my last post I dubbed in the "Cost Conscious" model). I have also realized that I am drawn to the underdog and redemption story. I personally believe through my life experiences that people have herd mentality and will often follow group think, tribal ways, and even bullying as we are wired to not appreciate outliers. I've be drawn to not drink the Kool-Aid and that has led me to companies that have  made bad decisions and received the occasional black eye. Go back thru my investments: Lululemon, Gamestop, AMC, and countless others needed a second chance. I simply did my research and bought enough stock that I am willing to lose (key concept). I don't have a gamblers nature, so this keep me sane.

2) I read and studied about investors, that I believe shared my personality. My thinking evolved over time and the #1 rule I share with people when they first start their investment journey is your first stock should be something you would be willing to invest $10K in EVEN if you only have $500 to invest. Prioritize investing, do a bit of gambling and you'll be ok.

I have a list of stocks that will be SOLD by tomorrow because they are expiring within a defined timeframe I set. Here is a summary of why I bought:

Novagold (NG): - My Paul Revere Trade - Inflation is coming and this is why houses, lumber, gas, groceries, and used car prices are skyrocketing. Awhile back, I bought Gold which tends to do well as inflation approaches.

Palantir (PLTR) - Being in Cybersecurity, I believe in data analytics. My cynical rationale is the government wants to collect LOTS of it. Hmmm, I wonder why. They will continue to land big government contracts which means $$$$

Par Pacific Holdings (PARR) - My Paul Revere Trade - Inflation is coming and this is why house, lumber, gas, groceries, and used car prices are skyrocketing. So if you can't beat up join up. When I go to the pump I don't mind...I have a hybrid electric vehicle which means that I'm not filling up often but I bought this Houston-based oil and gas exploration and production company so WHEN you go to the pump I benefit from high gas prices.

Magnite Inc.(MGNI) - The trend is online and this online advertising technology firm is my play on that trend. Magnite is SO NICE...I traded IT TWICE

Roku - I've traded this so many times...enough said

Micron (MU) - I bought this semiconductor stock because there is a shortage in semi chips. My Econ 420 class paid off. When there is a LOW supply of something you buy it --- WHY because the demand will go up and so will the price. 

Intel INTC) - I bought this semiconductor stock because there is a shortage in semi chips. My Econ 420 class paid off. When there is a LOW supply of something you buy it --- WHY because the demand will go up and so will the price.

Pershing Square Tontine Holding (PSTH) - This was my GAMBLE, notice out of all my trades I bought what I could afford to lose here. This is a SPAC investment and I am betting on my a-billi buddy, billionaire Bill Ackman. This investment will be buying a 10% stake in Vivendi Universal Music Group. So yes, I am technically the boss of some of your favorite music artists. 

Prism - Invest in Ourselves

1) Rich Paul (LeBron Jame's Agent) - Candid Interview About Business, Negotiation, Seat at the Table: 

Why I'm Reading: A great read on how to negotiate when the room doesn't look like you.

LeBron James’s Agent Is Transforming the Business of Basketball | The New Yorker

2) Black Wall Street + Tulsa Race Massacre: 

Why I'm Reading: History shows we can rise up, if we invest together.

9 Entrepreneurs Who Helped Build Tulsa's 'Black Wall Street' - HISTORY

Music - Longevity + Building Your Brand

1) Mount Westmore: 

Why I'm Reading: My takeaway is these rap legends have achieved longevity by diversifying their income. Don't rely on just one job. It will come to an end. Invest, Own Homes, Sell Products...or get disrupted.

One Surreal Night With the Rap Veterans of Mount Westmore - The New York Times (nytimes.com)

Know Your Worth - Grow Your Business and Stock Portfolio

COULD YOU DEFINE YOUR WORTH

The National Football League (NFL) season is finally upon us. I never get a chance to say I told you in my line of work, risk management and cybersecurity, but at least here I can. Does anyone find is striking that the NBA setup something similar to what I described back in March and their league is thriving...a locked down bubble. As a risk management professional, I get called crazy or told I'm worrying about nothing but there is usually always solutions for my customers to reduce their risk...they just have to determine if the cost is worth it. 

The NFL has had a chance to watch the success of the NBA and they've decided some stadiums will have NO fans and others will be at roughly 25% capacity because the game must go on...but I ask at what cost. I remind you that without an NBA bubble like scenario the National Hockey League had to start and stop their league play multiple times and ended up moving their games up to good ole Canada --- a safer environment for the players health. Major League Baseball has had a number of instances where outbreaks have happened in various clubhouses as it harder to create a bubble with a much larger player base. One thing is for sure, the games will go on because there is toooooo much money to be made. Need more proof, look at the Big 10, a college conference for teams mainly in the midwestern part of the US. They assessed the risk and canceled the fall football season. The backlash has been swift --- cities, fans who are bored, and even some players are less concerned about the outbreaks on campus and more worried about Ohio State's revenue impact to the city of Columbus or the University of Michigan projected revenue loss. It would be funny if it weren't true, but I'm afraid it is --- many schools require players to sign a waiver and that's where I come in. Risk Manager to the rescue -- a waiver ensures that if any of the players get sick or die, the player (or their family) cannot hold the schools liable for their health concerns. So I ask you, how much would it take for you to put your health at risk and play a season knowing you could get sick??

Would you be like college football players --- and play for free?

If it came down to it, do you truly know your worth? That is the question I wanted to pose to my readers today. When I was a young lad coming out of college, I had these rigid set of principles...imagine that. I used to tell anyone that listened or that worked for me --- you need to test the job market about every 3 years. It's easy to get complacent and fall in love with a routine of "working" everyday while others are hustling, learning new skills and challenging companies to pay them what they are worth. There are good reasons to no rock the boat and stay put...but what's the harm in Mr. Market telling you what you are valued. I got complacent for a few years and got into a zone where your employer convinces you that it needs you soooo badly things would go wrong if you ever took vacation and terribly wrong if I ever left. Well I'm here to tell you that companies move on and time moves on...no one person is that valuable and if you are you better be sure they are paying you a king's ransom. So I reminded myself a few years ago that Mr. Market determines my value and my employer simply needs to determine if they agree whether I'm worth it...it's not personal. Many people are quietly cheering this statement at home but if I asked you whether sports players are overpaid...everyone is quick to say yes. haha I wonder if it's because the majority of athletes in some of our biggest sports leagues are minorities...people of color. 

If I asked you to work for NO pay because I'll give you pay for your training courses, would you take it?  Probably NOT. Then why do people get up in arms at college players making billions of dollars for college sports but not making a dime...even off of their likeness.

When Cowboy fans and fans in general are in an uproar about Dak Prescott rejecting a contract extension worth roughly $33 Million a year --- he's called a overpaid crybaby. LeBron is told to shut up and play ball. But Patrick Mahomes and just the other day Deshaun Watson earned contracts that far exceed Dak's offered pay package so fans should you shut up and cheer him on (oh wait that's an oxymoron). I wonder how much of it has to do with the fact that fans usually complain when the player is a person of color, a black man making big time bucks?  I find it odd that no one, I mean NO ONE ever complains at the owner. The owner of most sports teams are white, worth billions of dollars and can afford to pay one man that amount WHY --- because they are bringing in way more that that in revenue. Many owners are business persons and investors like myself...just with a lot more commas in their bank account. My investment buddies are a who's who of owning sports teams:

Investor David Tepper (Carolina Panthers), 

Businessman Tilman Fertitti (Houston Rockets)

Investor Mark Lasry (Milwaukee Buckets)

Businessman and Investor Mark Cuban (Dallas Mavericks)

WHO PAY'S YOUR FAVORITY CELEBRITY'S BILL'S?

Lucky for you the good folks over at FIVETHIRTYEIGHT asked this question awhile back too. Aside from Shahid Khan (the Pakistani-born owner of the NFL's Jacksonville Jaguar football team) and Michael Jordan (who I believe recently sold a majority or all of his stake in the Charlotte Hornets),  ALL other owners across the 3 major sports leagues are white.

NFL Ownership: 97% White

MBL Ownership: 98% White

NBA Ownership: 98% White

Source: The Institute For Diversity And Ethics in Sport

FINDING VALUE - INVESTING IN YOURSELF (GROW YOUR BUSINESS AND PORTFOLIO)

I write this post because my startup cybersecurity firm just signed it's first client and hired and placed my first employee. I couldn't be more proud in trying to accomplish my mission to place talented people of color in corporate IT jobs. I was laughed at along the way, low balled, and even towards the end the companies almost tried to cut me out of my own deal. However; I am a risk manager and with contracts and an knowledge of what I'm worth and what my team is worth --- we won't settle and we didn't. I did it all without a company website because my skillset is the product. I set a target to get my first employee and engagement where I wasn't directly involved or managing the project and determined the profits would pay for my website and official launch. Know your worth, when they laugh work harder, and always be a triple threat player. I have a 9-5 job, manage a growing startup, and actively invest in the stock and real estate market. 3 Threat give me flexibility to shoot, pass, or drive to the basket. Here are my stocks expiring within 1 month, all profitable except one and the one trade that is down is actually good. I own that stock and when that trade is down, it means my stock is up. Know your Worth: ALIBABA (BABA), ROKU (ROKU), NOVAGOLD (NG) , FACEBOOK (FB), JUNIOR GOLD MINERS ETF (GDXJ), DRAFTKINGS (DKNG), KOHLS (KSS), CRONOS (CRON) - Note: Most of these trades w/ exception of Facebook, Cronos and GDXJ were recently added in the last few weeks and are profitable. 

 

King's Disease ---- DraftKings | ROKU | Gold

So, can I breathe? Can I walk? Can I speak? Can I talk?

Can I floss without you wanting me outlined in chalk?

Family gossiping, pocket watching him

Jealousy keeps blossoming, ain't let it box me in (King)

'Cause you are not a king if you can't come out a thing

That you got yourself in, claiming nobody helping

The stupidest part of Africa produced Blacks that started algebra

Proof, facts, imagine if you knew that as a child, bruh

Nostalgia, how I remembеr things

Remember crowns, remember, kings

They want your reign to cease (King)

You a king, you will be next to me, doing your own king shit, most definitely

We're so "Say less when I speak", y'all estrogen speak

Respected by kings only, address me as chief

Invested in things only a vet would

Only lames front on kings, that's expected from creeps

You mad at my brothas and any woman with interest in me

Artist: NAS  Song: King's Disease

Can I floss without you wanting me outlined in Chalk

My next post is about the King's Disease. I like to post rap lyrics because the world has gotten so literal. The art of communication is to read between the lines and the ability to understand people, cultures, and society is lost if we lose the art of reading people - their words, actions, and body movements. The internet has taken all the guess work outta that when I can I just re-send an article/post/clip or even a meme and then I allow you to guess or interpret what I mean without simply sitting down and communicating with you directly. I interview people for work and it's amazing how many reads I get from a voice, a look, or a person's body movement toward the questions I am asking. So again I wonder if the Internet is a form of King's Disease. A luxury that masses want but oddly everything everyone posts (breathe / walk / speak / talk) is captured and scrutinized -- even worse it's often canceled immediately - "Can I floss without you wanting me outlined in Chalk"?

'Cause you are not a king if you can't come out a thing; That you got yourself in, claiming nobody helping

I am very independent and having children you learn very quickly that there is something innate in us as human beings in wanting to do things ourselves. My daughters, just shortly after turning 1, all of a sudden don't want you to feed them. They want to feed, walk, and do everything for themselves. But as we get older or sometimes as our confidence breaks we find ourselves blindly walking into situations that may not be healthy financially, physically, mentally, or spiritually. We all go through it --- racking up debt, late nights drinking, abusive relationships, and even challenging the need for spirituality in our lives. For a child, all it takes is those two or three times of not being able to get food in your mouth to start crying and asking for help. But as we get older, we learn this thing called denial and often we DO NOT seek transformation from within until we've hit rock bottom.  Notice, I listed my 4 Pillars above and  challenge myself, especially during the roughest parts of my day, week, month, year, life to revisit those pillars for support. I try to do more which oddly is like doing LESS --  MORE meditation, sleep, exercise, reading, praying, seeking counsel to right myself and my core. I do this to get myself out of tough situations and to make sound informed decisions so that I pivot out of bad situations and decisions. Also, I find during these moments, seeking counsel is humbling because I do not have all the answers. This is the cure to King's Disease instead of blaming or claiming nobody's helping. Competing with each other is self-defeating, but that's why we teach "competition" so much in our society. If we work together and take on the systemic injustices in the system, imagine that --- real change --- that's our competition.

The stupidest part of Africa produced Blacks that started algebra; Proof, facts, imagine if you knew that as a child, bruh

My cancel culture vultures will take aim at Nas for using the term stupidest. But if you read between the lines he is bringing awareness to the advanced, highly civilized accomplishments of early African societies. The fact that Africa is the birthplace of forming civilized societies living together, developing math, and methods of communication. This is clear...you just need to open a book or be taught in school. I remember planning my trip to Africa and my then girlfriend asked me about safaris and jungles?? I didn't blame her but elementary, middle, high school, and college had failed her, us and our society. I knew since a child that safaris were more common to Sub-Sahara Africa, and other parts of Africa had deserts, and hills, mountains, waterfalls, and forests. The funniest thing is my mother's two story home in Western Africa is bigger than any home I lived in until I bought my duplex condo unit in 2010 at the ripe old age of 30. Proof, facts - my mother's crib in Africa was bigger than anything I lived in in America until I reached the age of 30. I wonder if an inadequate education that doesn't focus of contextualizing historical and factual information is King's Disease.  I used to travel to London often for work and remember an interesting interaction I had at a bar in the Picadilly Circus area in the West End of London. My co-workers and I easily stood out and our version of English clearly marked us as Americans. I am also sure it was our love for khakis and polos, which clearly are NOT in the British dress code. The men are often well-dressed during the work week and suits and ties are still the norm, even for the gent I witnessed riding a bike to work in a suit.  But back to the bar --- this woman from the BBC was chatting me up at the bar and inquired what plans I had for the weekend. So I asked what bars and restaurants should I visit and got a curt response of what "CULTURE" would I be taking in. I didn't understand exactly what she was talking about so I said what do you me. CULTURE, she said what CULTURE are you taking in. She proceeded to school me on the importance of knowing history, different cultures, and art. Something I almost never hear AT A BAR in America. In London, ALL of the museums are FREE. So I went to the Tate Britain, The British Museum, Imperial War Museum, Windsor Castle, and others to soak in CULTURE. I saw artefacts from all over the war dating centuries back...but it also opened my eyes that to the victor goes the spoils. There were items clearly belonging to African and Asian cultures of important value and they were in a British museum. What if America made all our museums free, I wonder if the awareness and appreciation for a global world would increase. Thank you to my friends in the UK, for a moment, I was suffering from King's Disease.

Stocks Fit for a King

Draftkings Inc  NASDAQ: DKNG  - I entered this stock after I learned legend, icon, and NBA greatest of all time Michael Jordan toon an equity stake in DraftKings.  He will become a special adviser to the sports betting and fantasy sports company and maybe read my posts about the unleashing of sports gambling on America. Recognize what's coming - states are drowning in debt and will want to dip into this revenue pot along with Marijuana legalization as they usually embrace quick fixes to solve problems. Don't believe me, look at my bet on Ceasars Entertainment, they were bought out by PENN National Gaming (PENN) for a nice profit.

Roku Inc  NASDAQ: ROKU - Roku is my COVID-19 investment play. It aligns with my larger theme of cutting the cable. America's appetite for staying open and not addressing this disease head on means people with be home streaming the hell out of this service. I wrote earlier this year about cutting off my cable service...sorry Comcast and we don't miss it for a moment. Roku is a day trader's dream because it is a more volatile than a teenager in HBO's hit series Euphoria. I place a HUGE bet on ROKU and each week I trade against it for additional income. The worst is these income producing bets cause me to have to sell my base position early. The upside, is currently during the entire COVID summer I've been collecting 100s of dollars a week of income as the stock moves up in trades that might take the stock off my hands (i.e., like a pending trade offer for my best player). Like Jay said the industry is shady and needs to be taken over --- so I'm coming for the crown. King shit Nas

Gold - I wrote just a few posts ago that this rally in the stock market is artificial. The Federal Reserve is single-handedly propping up the markets and has printed over $7 Trillion dollars to stave off foreclosures, companies closing, and high unemployment. They deserve to be applauded and certain politicians probably deserve to lose their job as real people are hurting. The only problem is this analogy: The Federal Reserve is akin to your family using a credit card to stay afloat - to pay the mortgage, food, car, and school bills. Eventually the credit card company will cut off the credit and/or ask you to pay it back. In governments, paying off debt usually means services are cut - government workers - post office, city transportation, trash and sanitation. It also means tax hikes in the future. Hikes in the future means inflation will be in our future --- assets that are not in dollars is the bet to protect your dollar. Gold, Silver, and yes even Bitcoin might be the play to diversify this historic helicopter money printing effort.  I didn't even mention, that UNTIL there is cure or bold steps taken LIKE A BUBBLE to stop the disease from spreading ---- people will continue hurting and the Federal Reserve may have to PRINT MONEY until things improve. Yes I own Novagold, Warren Buffet owns Barrick Gold, IAU is an ETF as everyone is winning now but there is always a cold winter. 

Stay blessed, stay safe, get your URB own

Store My Gold on Racks (GOLD, GDX, GDXJ, RXT)

Need for a Bubble

So in my last post you saw my brief tribute to Nas and Lauryn Hill. They are true giants, in my opinion, in lyrical expression and miseducation. Similar to Lauryn Hill, my blog is a miseducation on life because it asks you to wake the F%!# Up and think. I call my version of miseducation -- unplugging from the matrix. Don't get my blogs twisted, in order to wake up you need to ground yourself in the 4 Pillars we often cite here. One of the biggest being education and continuous learning...I call it SLAM +, please look up my post on Science, Legal, Arts, Math and + (technology and trades skills). I heard today COVID-19 has shown a disparity that I'm sure in negatively effectively some of my readers. College educated workers, especially those with 401K retirement type accounts are thriving in this pandemic. One of the root causes --group most likely to Work From Home.  Which then allows them to sit back and throw stones...like a common phrase I've heard: "Why were the unemployed getting an extra $600 a paycheck?"  This is the type of bs I can't believe we are still discussing...they must have been listening to Jay because --- they have no passion, no patience, and I guess they hate waiting --- on items like evictions, unemployment, safety of front line workers, etc.  Unbelievable, you want to send the less fortunate to the front lines while we can chill at the crib, reducing our risk, while watching the Federal Government bailout our 401K plans and re-inflating them past their previous levels. I guess main street doesn't get a bailout that rivals what your 401K got?  When I made a decision to WFH over 3 years ago, I vowed to never return to a physical office ever again. Many laughed at me when I gave them my risk assessment but look at where we are at now. I told you then and say it now, I can get my work done, take care of my family and better use my free time (while often working more hours) at home. But this benefit I've worked hard for, doesn't mean I should forsake my front line brothers and sisters. They need the best security, protections, and piece of mind for their families like WFH gives my family.  OHH did I mention, I am assisting my daughter with her virtual school program -- not exposing my baby to unnecessary risk when the National Basketball Association just showed all of America what is needed to survive and thrive in this pandemic --- A BUBBLE...sound familiar.  

Storing My Gold on Rack

I could give you my best Tyga, Rack City impression because I am a fan of his music but I think more importantly a fan of his mindset. If you recall, he was one of the first defectors from Cash Money Records when his L (in SLAM) - Legal contract appeared to be whack and NOT in his and his family's best interest. He was called names and the cancel culture told him be happy with what Baby (owner of Cash Money Records) gives you and did for you.  How did that turn out...well years later let's ask Lil Wayne who was also disgruntled and this led to The Carter V album release being delayed over disputes about...yep you guessed it his contract. At the end of the day, you have to do what best for you and your family and I have always rocked with Tyga before and definitely after that move. I'm not even going to touch the Kylie Jenner subject because at that time I was quoted as saying she was the most "down to earth" Kardashian Jenner AND I thought her then Social Media business empire was growing quite well. Fast forward to today and a company I owned Coty (cosmetics industry) bought a 51% for a roughly $500M stake cementing her Billionaire status. Now every hit song he writes, he gets a full "Taste" haha pun intended of the profits!

So Tyga let me tell you about my Rack City:

I have not been shy about owning GOLD in this economy. History has shown when the Federal Government prints money out of thin air to inflate the economy (and then does it at the fastest clip ever seen in history.) then it's time to put GOLD on my investment rack. My previous posts disclosed that I own shared in a small mining company called NOVAGOLD (NG) and I also like the Gold and Gold Miner ETFs. I've even disagreed with one of my first mentors Warren Buffett by owning GOLD since the 2008 financial crisis when my Billionaire Boy Club buddy John Paulson introduced me to NovaGold to hedge the pain of the financial crisis. Another time in history that we printed money like nobody's business. 

1) I agree with Warren that Gold has NO intrinsic value, and 

2) I agree that it should NOT be usually held as I technically have NO way to value this asset. 

However, assets like GOLD do have a place in this world and that is when there is FEAR in the water. While I am not fearful of much, I do think the US economy is at one of it's most dangerous crossroads possibly ever. The divineness is HIGH as people are diving the country along racial, economic, and social issues. So I am glad to hear that Warren the teacher, has done something that his pupil has done since 2008 --- buy GOLD!!! And he did in a major way:

1) Warren Buffett and the Berkshire team purchased a $562-million stake in Barrick Gold (GOLD)

2) He also SOLD --- most of the major US banks (JP Morgan Chase, Wells Fargo, Goldman Sachs)

Warren won't be speaking soon on TV soon because he doesn't want to scare the masses that follow what he says. But like systemic racism and oppression, I have a responsibility to speak out and keep it real. I would follow what he's doing BUT I already own GOLD, but will consider evaluating Barrick Gold. Investors make purchases like this when we see risk in the economy. Go back and search my posts using the term GOLD and you'll see I own:

Novagold (NG)
Gold Miners Juniors (GDXJ)

and like but do not own:

Barrick Gold (GOLD)
Gold Miners (GDX)
Gold ETF (GLD)
Gold ETF (IAU)

I'm even re-thinking my position on Bitcoin as its a useless asset but if I believe there is trouble in the water, I want to consider assets people will run to.

 In honor of Tyga, Mr. Rack City, I also purchased shares of this stock:

Rackspace (RTX) - around the $17.5 range, the word on the streets is Amazon is sniffing around this company. Time to take a flyer on my version of rack city!

Novagold (NG); Gold Miners Juniors (GDXJ); Barrick Gold (GOLD); Gold Miners (GDX); Gold ETF (GLD); Gold ETF (IAU); Rackspace (RTX) 

The Virus Goes Viral --- Why Stocks are in a Bear Market

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

The Virus Goes Viral

This week the stock market was rocked by round the clock news of a SARS like coronavirus, COVID-19. The Dow fell 12 percent this week alone, which I believe is the biggest one week drop since the dreaded financial crisis. With over 3 Trillion Dollars worth of value erased in US Stocks, I get asked what in the world do I think is going on and what am I doing during a period like this. This very topic came up today when I spoke with my dear friend who happens to be one of the biggest mortgage brokers in the country.

When asked for my thoughts -- I told him plainly the Virus has gone Viral. And what I meant by this is, in today's hyperconnected world we are getting peppered with news updates, pictures, and opinions all day. I truly believe the virus has gone viral and we are seeing the market reacting to real-time tweets, posts, and texts as news comes out instantly. Gone are the days where we all had to tune into CNN or wait until our local news came on to try and decipher what was happening a world away. Over the past few weeks, I've seen constant pictures of cruise ships (not able to dock), masked people in coffee shops, and empty streets and restaurants. So my mind instantly goes to my favorite End of the World shows like the "The Last Ship" or "The Walking Dead" which similarly displayed quarantined ships and empty streets, respectively. The fact is as a county and world we may be more worried and nervous that ever before (thanks to Ring doorbells) and a polarized political environment. That uneasiness and mistrust, today more than ever, may be causing this natural response that this is the Big One. I am NOT arguing for less information but our futures will be scarier when you can watch a live counter of people getting sick and dying across the world.  

First, we should be amazed at how rapidly people now move across the world. When we had SARS back in 2003, the world was less mobile and while that virus hit with a fury -- it impacted less people. COVID-19 is a similar genetic strain to SARS but is clearly more powerful (virulent) and contagious. In a more mobile world, when one part catches a cold the rest of the world will catch that cold or at least sneeze. Similar to the flu and cold season, those most at risk clearly appear to be the elderly and people with underlying health conditions. 

So people need to hear from those in charge to ensure that a plan is in place for their health and well-being. This is a critical response to all those real-time updates we get and the apocalypse shows I watch. If I got a real-time update of flu infections and deaths each season, I would never leave the house (let alone a homicide update for most metro cities).  I wasn't paying attention back then  -- but does anyone know what we did as a country when SARS or Avian (Bird) flu impacted the world?  I don't so my point is don't panic.  Hospitals already restrict youth during flu season so our next best steps are: a) protecting our elderly    b) reducing close contact    c) washing our hands   d) hoping for warmer weather

With markets being at ALL TIME highs, it is a very rationale to be scared but don't panic and definitely don't SELL everything.

What Should Be Sold ---

Segments of the markets involving in travel, leisure, hospitality, dining, and retail. In addition, businesses with significant exposure to Chinese customers or China's supply chain. They will be sold off because we just don't know how long this disease will last. Also, due to today's hyperconnected world, NO ONE wants to be the company that didn't close its doors soon enough, cancel flights fast enough, or take the necessary precautions to keep customers safe. So businesses in this segment will take a hit.

What Should Be NOT BE SOLD ---

I think your healthcare, internet, gold and gold mining stocks should not be sold. I also think you need to try and protect your portfolio. Protect Protect Protect - you'll see that's why I've own gold related stocks like Novagold since 2008-9. Oddly enough that was the same time I advised my mortgage broker to add Gold to his retirement portfolio. I recently wrote about a healthcare stock: Gilead, a company helping to develop a vaccine for COVID-19. And I want to share with you an investment vehicle called the Volatility Index. Known as the VIX, this offers some protection when the stock market gets very volatile. I bought shares in the 4th quarter of 2019 (a little early) when I thought the market was getting to high -- I purchased shares around the $15 a share range. I'm glad to have insurance protection when the market feels like it is falling off of a cliff.

I own VIXY which is a volatility index fund. When things seem too good to be true, BE FEARFUL, and buy protection. Roughly 10% of my portfolio is being offset by VIXY which gives me some piece of mind on down days.

Try and protect yourself in advance of market downturns and then during the downturns we go bargain hunting. I picked up the following stocks in the last two days:

• Facebook (internet) 
• Match Group Inc (internet) - Owners of dating sites: Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24
• Teladoc (healthcare) - Virtual/Video conferencing healthcare services with your doctor and the future of a simple doctor's visit
• Uber - While ridership will decline, Uber Eats may pick up, I think it will be temporary and for a stock that fell from $42 to $29... an opportunity exists

My assumption is most people will be swiping right, wanting an expert doctor opinion or eating in. Me, I'll be #investandchill

NovaGold Resources Inc. (NG) - Mining for Riches

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

In honor of Black History Month, for my next few posts I am going to release some of my core positions, like Novagold, and how they got there.  I have received questions from a few readers over time which circle around -- "How does someone invest like how I write here?"  At the top of each post, you'll find the basic building blocks to get you to where you need to be -- use the links to invest in yourself and your family.  You can't build a meaningful investment portfolio without a consistent source of income - like a job, a budget (that allows you to SAVE capital or funds for your investments), opening a brokerage account (to manage your investments), and physical, mental, and spiritual fitness (that allows you set meaningful goals).

As your personal finance coach, I can't begin to help you on the march to freedom without these things in place.  For example, I have a friend who was a landlord and rents their property to a tenant. The lease had lapsed and the tenant was stalling each month by asking for extensions and stating they had an interest in buying the property.  Like a personal trainer, I tried to coach this person by asking them what goals did they set for themselves? Even more simply, what is in the best interests for you and your family??  I was surprised by the pause in response, but by asking this one question it became a lot more clear what needed to be done. Put your goals first and if selling your property is best for your family's future -- get it done.

NovaGold 
Why did I invest in Gold? Well I have been investing in gold since 2008. One thing I learned during that rough time period for America was that Gold is a safe haven. Gold, like other metals and Crypto Currencies, is not a currency backed by a government which can purposefully be inflated and deflated.  So in 2008, the market was on the path to being broke so the Federal Reserve decided to pump the economy full of money. Gold is a good asset to bet that it's value may rise if you think the dollar value is being deflated (by the Fed pumping the economy full of money).  

So why in the world is Gold doing well when we are arguably in the best economic period some claim America has seen. Well #followthemoney -- Because the economy is doing fairly well, I was preparing to exit my Gold position. The Fed doesn't need to deflate (pump money into an economy doing well) so I anticipated Gold was NOT going to do well. The strange thing that has happened in the last year is that the Trump Administration has signaled for the Fed to juice or pump the economy with money -- even while its at record low unemployment. That's a signal for me as an investor that something is wrong with this thesis -- either the economy is actually NOT doing as well as we thought OR the Trump administration is artificially manipulating the Fed Reserve to juice the economy further.  While you get political -- I prefer to get rich:

Source: Google
1) I invested in Gold over a decade again. Patience is a virtue when you begin to understand the markets. Search my posts and you'll find my previous posts on NovaGold.

2) Look at this chart above. Yes, I finally stopped trying to sell my Gold position in NovaGold and let it run. If the Fed is juicing the economy, the Wall Street world hear's the signal "The Economy is NOT as strong as we believe... when the Fed lowers or does not raise interest rates".

3) The prudent side in me says, I believe the data coming out of our government and the economy is doing well. But then I can't explain why the Fed is not raising interest rates...except coming to the conclusion that they feel coerced into keeping rates low during a period of record low unemployment. So similar to my Sprint trade, I'm just going to follow the money...why guess that the government is going to do the right thing.

Final Summary: Gold runs higher as the economy cannot reach 3% GDP growth even with the Fed juicing the market, and the tax cut boost. But new entrants into the Gold space, be careful...it has run up very fast but with fears of coronavirus, the 2020 US Presidential Elections it could run even further.

2019 Year In Review - Mask On...Mask Off

Thank you Future - Mask On...Mask Off. Represent...I Gotta Represent

Mask Off - I am currently closing the books for 2019 and reflecting on a year of ups and downs.  Personally, I was rocked to my core this year as I lost my father. It was a deafening experience because he was an amazing father, husband, educator, community and spiritual leader. When it happened, many of us were stunned, discombobulated and grasping for balance.  

I use the word numb because I arguably experienced my best personal year I have ever had…and didn’t care.  I was very fortunate from a very early age my father taught me how to be strong, independent, and prepared to lead the family when that time came. So that is what I – what we all have tried to do, with him in mind.  Finally, this year marked my second daughter and 3 nephews being introduced to the world and my family and they are a big source of joy as we recover from our loss. 

Mask On - I get my strength from my family and push on to make a difference in this short life we are given.  I keep my eye on the prize and financial independence, being spiritually guided, and mentally woke is a powerful combination that NOBODY can touch.  So mask on and back to the lecture at hand: I ran the numbers and I turned in a pretty solid year. At roughly 23%, my personal portfolio that I manage did fairly well and IMO I didn't take on a ton of risk as I targeted value stocks.  Some are discarded gems, others I did detailed research and just saw a different story and narrative than many others.  I kind of like going against the grain...following the herd is NOT in my DNA ask Kendrick Lamar. .

Remember you all can do this. Need proof, the broader market turned in a similar performance and an event better performance was found in a technology based strategy like simply buying the NASDAQ index this year (to the tune of roughly 35% this year). I've got big goals this upcoming year and I will introduce them later but here are the remainder of the best picks I uncovered for 2019:

• Symantec / NortonLifeLock (SYMC)- Value Play; Part of the Business was bought out gave us a nice pop 
• Telsa (TLSA) - Value Play Doubled in 2019 
• Sprint (S) - Played options very well (now letting the profits ride on T-Mobile deal approval will be biggest gain if hits)
• Okta (Okta) - Cybersecurity trade that I sold too early but you live and learn
• Allergan (AGN) - A beaten down value play that finally payed off; This company make BOTOX and will be bought out by Abbvie
• Arconic (ARNC) - Pickup up some shares about the $19-21 range; value play that was dogged by litigation from a high-rise fire in London; Sold to early but it's all good
• Humana (HUM) - This stock ran up after a few big issues failed to damper healthcare stocks: 1) the Trump administration came down lightly on fines for not disclosing their negotiated rates ( a supposed game changer to bring down drug prices) and 2) Elizabeth Warren scaling back her Medicare for all plans
• Red Robin Gourmet Burgers (RRGB) - Pleasant Surprise; Stumbled on to an under performing value stock that is under pressure to change CEOs and deliver better results
• Cronos (CRON) - Surprised to see this one was so profitable; traded the Marijuana stock a few times. I have big hopes and so does the alcoholic beverage industry as they took a major stake in this company. One of the few companies I still hold a stake in
• CrowdStrike (CRWD) - Cybersecurity IPO stock that focuses on protecting your devices; They got absolutely crushed after a bag earnings and I was nimble and played this stock very well. I will be back in CrowdStrike this year
• JD. COM (JD) - My patience was rewarded; I calculated that America and China need each other. Trump removing the China tariffs caused this stock to take off from the mid 20s and now its in the mid 30s. This is a core holding for the future 

I want to wish you a very Happy New Years. Many blessings to you all and don't be afraid to dream but do it rationally, help others, take prudent risk, and take care of those who are good to you.

Here is my gift to you the rest of the best:

• VIX Index - I traded in and out of the VIXY; I'm waiting for volatility to return in 2020
• Zscaler - Plagued by earning's misses; I traded ZS in 2019 and expect to be more active in ZS and the Cyber stocks in 2020 as expectations and acquisitions are ripe for the picking
• Kohls - Between dividends and a small profitable trade, Kohls made my list but then turned into my achilles heel; I fell for their splashy venture with Amazon which was probably to cover for a bad earnings call to come. They got crushed and will need to bounce back  
• Century Link - No big notes here. They stabilized around the $10 range and it was a nice win
• Ceasar's - A good example winning and lose. I bet on Ceasars in 2018. Was happy when a deal was announced and thought I won big. No deal came and my trade blew up. I put the trade back on and benefited when El Dorado decided to buy Ceasars...so only a small gain comes from all this work.
• AVEO Pharmaceuticals - I had a small win but AVEO continues to have disappointing drug trials  
• RedHat - bought out by IBM wish I had a bigger position
• Novagold - Gold is back and being helped by Brexit and the recent attacks in the Mid East
• Anadarko - Bought out by Occidental Petroleum; I beat my buddy Buffet to this trade as he funded Occidental's purchase
• Facebook - Hard to fight the beast. They known everything and are selling it...ohh marketing it to anyone with cash
• Foot Locker - Hurt by the China issues, severely under-performed but Nike's resurgence may bode well for them in 2020
• Newell Brands - A value play that I think has bottomed. Let's see if we can trade this stock on the way up 

Clearly 2019's song of the year is HOT by Young Thug featuring Gunna and Travis Scott...

 my job is to keep it HOT in 2020...look out

How to Invest in a Clinton / Trump Election Year...

First, I'll address where I've been since my posts have dried up for about a year. My answer is: "Still Right Here".  As we all know for the last few years, people continue to have to do more with less and that extends to companies. With unemployment pretty low for most big companies, they have to squeeze more out of every employee.  Good old fashion hustlin', and I got the memo and have been very busy at work and in my personal life.  The other reason, I haven't written much is because as a country and in the stock market things appear to be in a holding pattern.  I had a feeling a little over a year ago that the stock market was reaching its tops and I took my ball and went home.  For my portfolio, that meant I decided to sell some of the stocks that had been big winners. If you need a reminder flash back to this post: http://urbanomics.blogspot.com/2014/08/marketsno-longer-starting-from-bottom.html

I never like selling but if life you can't get too greedy so I parted ways with names like:

• Allergan - maker of botox (Allergan was acquired Actavis for a nice price) :)
• Lululemon - athletic wear (bought when it was in the low 40s, after some of their pants were showing too much skin and when the CEO ranted he didn't want bigger sized women wearing the clothes, and waited for them to correct their missteps)
• Caterpillar - big equipment maker (bought early and they fell, then I acquired more shares over time through patient dividend investments and they rallied above my purchase prices...just sold in the last few months for a small gain)
• NovaGold - gold miner (bought over 3 years ago and they dropped by over $50 percent; my old mentor reminded me if the fundamentals make sense buy when they are on discount. At roughly $3 I bought more and sold a good portion of it this year at just under $7. 

I felt a little over a year ago we were closing in on the top and I was just a bit early, but by planning then I was starting to set myself up for what's to come. A market near its highs, a Hillary Clinton and Donald Trump election year, and other surprises like the UK leaving the European Union have kept the markets a little uneasy. So I'll tell you what I've been quietly doing as I've sold my winners over the last few months:

Buying Top-Tier Companies (when they reached Low Prices):

• Apple (bought in the low $90s)
• Verizon (bought in the low $40s)
• Manchester United (bought b/w $13-14 range)
• Gilead (bought b/w $73-74) 
• Alibaba (low $80s)

These bigger names anchor my portfolio and should grow in good times and fingers crossed, the bad times. They all pay a dividend so they will pay you to wait :)

I then decided to begin thinking about how I wanted to thin my portfolio out to and hold higher quality names. I've been making hard decisions and here are some of the mistakes I think I have made:

• Gold - NovaGold (I still own a small portion and should have sold it all when it hit its highs)
• Oil - There is too much oil around the world and oil stocks are NOT going anywhere anytime soon. I own (British Petroleum(BP), Oasis Petroleum, Cheniere Energy) and the only good thing is the latter two, I don't hold big positions. BP pays a nice dividend so I use that to buy more shares and love that this is a long-term cornerstone of my portfolio at these levels.
• Non-Dividend Stocks, Not Growing - Lastly, I have a few stocks that don't pay a dividend!! I've held them for quite some time and they are just sitting there taking up space. For me names like:  St. Joe's Company (real estate), Nuance Communication (voice services like Siri), Hertz, and a few others just are not bringing much to the table. So I'll likely be parting ways with these names in the future.

I'm reminding you to go Vote, go Cubs, for me...go focus on higher quality names in this crazy election year.

~ Get Ur Urb On